Kentucky USDA Rural Housing Service (RHS) Section 502 Guaranteed program

via Kentucky USDA Rural Housing Service (RHS) Section 502 Guaranteed program

• USDA loan are only available in certain counties of Kentucky.
• There are two types of USDA loans available: Direct and Guaranteed.
• 100% financing. No down payment
• USDA will go down to 580 score and uses and  automated underwriting pre-approval system called GUS-Guarantee Underwriting System. The GUS findings will dictate your loan pre-approval.
• Income limits based on county and number of people in household.
• Must be 3 years removed from bankruptcy and foreclosure
• No purchase price limit
• Upfront funding fee of 1% of loan amount paid to RD at closing
• Annual mi fee of .35% paid each month for life of loan.
• Takes on average 30-45 days to close.
• 30 year fixed rate is the only term available and rates are usually comparable to FHA and VA government mortgage insured rates.
• Do not have to be a first time home buyer and can currently own another home if USDA deems the current living situation not suitable.
• Appraisal has to meet FHA minimum standards
• You can buy a home with land on USDA Loans as long as the property does not have any agricultural characteristics or income producing capabilities.
• There is no set max acreage but the appraisal will dictate approval of property by USDA.
• You can only use USDA loans to purchase property or refinance an existing USDA loan